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Nineteen of the Top 25 Most Competitive Neighborhoods Were in the
Seattle Area. The Rest Were in San Jose, Boston and Denver.

SEATTLE--(BUSINESS WIRE)--Dec. 21, 2017--
(NASDAQ: RDFN) — The 2017 housing market was the most competitive for
homebuyers since 2013, according to a new
analysis from Redfin (www.redfin.com),
the next-generation real estate brokerage. Just over half of all offers
written by Redfin agents this year encountered competition. That’s up
from 49 percent in 2016, but below 2013’s high of 65 percent. The pace
at which homes went off the market made the competition more intense
this year. Homes found buyers after a median 45 days on market, six days
fewer than 2016.

Forty-one percent of homes that were listed in 2017 were Redfin
Hot Homes, a designation earned by homes with 7/10 or higher odds of
going under contract within their first 14 days on the market, as
determined by Redfin’s proprietary algorithm.

Grass Lawn in Redmond, Washington earned the distinction of most
competitive neighborhood in 2017. Nineteen of the 25 most competitive
neighborhoods of 2017 were in the Seattle metro area, where 67 percent
of homes listed this year were Hot Homes--the highest share of any
market--and 62 percent of offers written by Redfin agents faced bidding
wars. Competition was strong across the Seattle market, both in more
suburban neighborhoods like Grass Lawn and Crossroads (#3) and more
urban neighborhoods like Lower Queen Anne (#13). Several neighborhoods
in North Seattle made the ranking, including Pinehurst (#2), Victory
Heights (#10) and Licton Springs (#11).

In Grass Lawn, 73 percent of homes sold for over asking price and the
typical home found a buyer in just six days. The average sale-to-list
price ratio was 108.4 percent, an indication that many homes were bid up
well-above asking price.

“Grass Lawn is so super-competitive because it’s very close to the
Microsoft campus, and Google is also expanding its footprint in the
area. It is a suburban area with mostly older homes,” said Redfin Agent Gina
Madeya. “The area offers easy access to one of only two freeways
that can get you across Lake Washington and into downtown Seattle and
it’s also a short drive from the shops and restaurants in downtown
Redmond and Kirkland.”

Madeya helped a family purchase a home in Grass Lawn earlier this year.
The home, which she says came on the market slightly underpriced at
$860,000, was bid up to over $1 million. Her clients were absolutely in
love with the home. Their offer wasn’t the highest, but they won over
the sellers by waiving all contingencies, working with a reputable
lender and providing a $100,000 earnest money deposit.

“This sounds extreme, but that’s what it takes in some neighborhoods
because demand is so high for so few homes,” says Madeya. “My advice to
a Seattle buyer is to get really clear about your full financial
capability and your risk tolerance. Find out what you can truly afford
and start looking at homes well below that amount, so that when that
bidding war inevitably happens, you have some leverage to work with. Get
clear early in the search so you and your agent can be more deliberate
and strategic.”

Bidding war strategies often come with risks for the buyer, and Redfin
recommends homebuyers speak to an agent to determine the appropriate
strategy.

Redfin (www.redfin.com)
is the next-generation real estate brokerage, combining its own
full-service agents with modern technology to redefine real estate in
the consumer's favor. Founded by software engineers, Redfin has the
country's #1 brokerage website and offers a host of online tools to
consumers, including the Redfin
Estimate, the automated home-value estimate with the industry's
lowest published error rate for listed homes. Homebuyers and sellers
enjoy a full-service, technology-powered experience from Redfin real
estate agents, while saving thousands in commissions. Redfin serves more
than 80 major metro areas across the U.S. The company has closed more
than $50 billion in home sales.

For more information or to contact a local Redfin real estate agent,
visit www.redfin.com.
To learn about housing market trends and download data, visit the Redfin
Data Center. To be added to Redfin's press release distribution
list, subscribe
here. To view Redfin's press center, click
here.